David

Sorry, I meant disability payments. He was taxed on these payments in past years and paid back a portion of the disability payments after social security started paying him. Thanks.

TP is getting a credit for taxes paid in 2006 for worker's comp payments received in 2006 but paid back in 2007. The instructions say to enter the credit on line 70 with the statement off to the side "IRC 1341". The ATX program seems to be treating this correctly and does include the IRC 1341 reference. However, I get an e-file error saying that the tax on line 70 must equal the total of tax paid from form 2439, form 4136 or form 8885. None of these forms apply. Furthermore, the ATX program line 70 input detail has an input line that says IRC section 1341 credit". Does anyone know what I need to do to get rid of the e-file error message so I can e-file the tax return? Thanks.

I am preparing a final tax return for a decedent and a 1041 for the estate. I have some 1099-INTs, 1099-DIVs, 1099-Bs and 1099-Rs that should have the decedent's ssn but were issued to the estate's tax ID # and vice-versa. So I am trying to separate the income based on receipt prior to DOD to the TP and receipt after DOD to the estate. If the 1099-B is issued to the TPs ssn but most of the transactions occured after the DOD, I think I have to record the complete 1099-B on the final tax return so the information will match the 1099-B filed with the IRS. I then need to pull out the amount that should be recorded to the estate's tax return. Where in the ATX software do I reduce the amount that should be recorded on the estate's tax return? When I prepare the estate tax return, where do I indicate the portion of the 1099Bs, DIVs, Rs, etc. that were issued with the TP's ssn but should be recorded on the estate's tax return? Thanks.

I can't e-file an 1120S because I have two errors that say the value must be numeric and without cents (limited to 15 characters). I have checked every line and all details for every number on the return but everything is entered correctly. Has anyone else experienced this problem? What do I need to do to clear the errors and e-file the return? Thanks.

I updated a few days ago. I have had this problem for a while, even during the heat of the tax season. It is aggravating to have to constantly input all the p.y. accumulated depreciation each time someone needs a copy of the tax return.

I'm not having problems saving information. Everything else seems fine. It's just when I have a new client and enter the prior year accumulated depreciation. For some reason after I save the return and then open it later, most of the prior year accumulated depreciation information has disappeared. I thought I could see a common trend but it looks like it keeps the p.y. accumulated depreciation for assets placed in service in 2006 and then sporadically it seems to keep a few more assets placed in service in various years. So it seems to be hit and miss- no common trend. However, I lose the p.y. accumulated depreciation for most of the assets. Anyone know a fix? I don't seem to be able to count on ATX support. Thanks.

Yes, I have saved the return each time. This is very strange.

After I input the prior year accumulated depreciation information into the asset entry for new clients, the information is lost each time I close the tax return. This has happened on all my new client tax returns. Has anyone else experienced this? What do I need to do to prevent this from happening? It is aggravating to have to re-enter this information over and over again. I searched for this problem on this site but nothing came up. I sent one of the tax returns to ATX support and was told I would hear back within 24 hours. I had to call today and they still don't know the status. No one had the courtesy to call me back to let me know they don't know what's going on yet. I have never heard back on another issue I had during the heat of the tax season so I don't have much confidence that I will hear back from ATX tech support on this. Thanks for your help on this.

Thanks, Zeke. That makes sense. I have a question about deductilble expenses on Form 1041. No estate tax return is required since the assets are valued well below the $2 million level. The estate paid for lawn care to maintain the decedent's house before the house was sold. Are these deductilbe expenses? What about homeowner's insurance on this same house that was paid out of the estate? Thanks, David

I am preparing an estate tax return 1041 using ATX software. The estate sold the decedent's house at a loss. When inputting this information into Sch D, it is allowing the loss to flow to the front of Form 1041- of course at the $3K limitation with the rest of the loss being carried forward. There is no option to show that the house is a personal sale and to not deduct the loss. The only input type applicable is non-business gain/loss or blank. What do I need to do for the program to treat this correctly? Thanks, David

Yes, I have Adobe 8.0 and have updated it recently. When I click on PDF instead of Print is that using PDf factory or some other program? Thanks.

When printing a PDF tax return in the ATX program some of the pages print in small scale. It seems as though this starts with the detail schedules and the state tax return. How do I get the complete tax return to print PDF in normal size print? Thanks.

None of the instructions regarding sec 179 deduction for vehicles weighing over 6,000 lbs and under 14,000 lbs state that the vehicle has to be new. I remember several years ago that the vehicle had to be new in order to take the sec 179 deduction. Was this revised when the limitation was changed to $25K? Can a used SUV > 6K lbs take the $25K sec 179 deduction? Thanks.

KC, Thanks for your help on this. I had to call ATX but at least I'm back in. For Form 3115- My understanding is that for a change in amortization, I need to complete Schedule E under Part III. Is this the section you are referring to? There is another Part III titled "Information For Advance Consent Request". I don't believe this is the section that needs to be completed. In either case, I still don't see a line where I would input the dollar adjustment for the correct amortization from 1996 - 2006. I also don't see the worksheets you refer to. Where exactly are these? Sorry to be a pain and appear dumb about this. Do I only show the 2007 amortization in the current amortization line of the Asset Entry form, or do I also show the correction amount from 1996 - 2006? This is one of my main questions- where do I show the huge amortization dollar amount to correct amortization from 1996- 2006? Thanks.

New C Corp client's previous tax preparer has not been deducting goodwill amortization properly or consistently. Goodwill was recorded in January 1996. The years that amortization was taken appears to be on track to amortize over 30 years. Some years no amortization was deducted. I realize I need to file Form 3115. My main question is regarding the statements that are required. Is there anything in the ATX program that I can use to attach the required statements to Form 3115? I can't seem to find a statement form that addresses the requirements listed on the form instructions. The only thing I see is a blank statement tab in the elections form. Is this what that statement form is for? Also, where do I input the adjustment for goodwill amortization from 1996 - 2006? How is this handled in the asset entry- or is it not handled there? I am e-filing the tax return. Do I still have to mail the Form 3115 to the IRS as per the instructions? The C Corp qualifies for the automatic change request. Thanks for your help. P.S. On another matter- I have been locked out of the ATX site. My password has been reset to my installation code. I am not at my office this weekend and am working at my home office. The instatllation codes are at my office. Does anyone know how I can get my installation code without having to sign into the ATX site with a password? Thanks

Thanks for your help. I guess I will add the ordinary income portion, discount, to line 7. Have a great day!

Employers used to show the discount as taxable income immediately upon ESPP purchase on the employees' paychecks and on the W-2. When did this change? I am trying to determine if the earlier method was still being used in 2004 so I can determine whether the TP has already been taxed on the discount. Thanks.

Thanks for your help on this. I wasn't sure if I should add the ordinary income portion to line 7 since I didn't see ESPP income listed on the worksheet. So I guess I just add that description to one of the blank lines on the worksheet? Thanks.

Hmmm... do you think the employer already put the ordinary income portion on the employee's W-2 back in 2004? I know employers used to put the purchase discount on the w-2 at the time the employee purchased the stock. However, that changed sometime back, didn't it? It sure would make things easier if employers still did that. Like you, I have always had the situation where the TP was still an employee and the discount was included in the W-2. I just haven't had the situation where the TP is no longer an employee and has sold ESPP shares while not an employee. Thanks

Thanks for your response. TP is no longer an employee since 2005. He purchased the stock during 2004. He sold the stock in 2007 and received the 1099-B showing only the sales proceeds- no cost basis information. I had to get the cost information from the TP. So no ordinary income was reflected in the TP's W-2 since he is no longer an employee. As far as I know, no ordinary income should have been reported by the ex-employer for the ESPP shares I don't see anywhere in the ATX program how to handle the ordinary income portion of the gain. The line 7 wages worksheet doesn't have a line for this. How does everyone else report the split of ordinary income and LT cap gain for ESPP stock sales in ATX? Thanks.

Client sold stock purchased under an ESSP plan and has met all the holding periods. He no longer is an employee, which I don't think matters. Part of the gain, the TP's 15% discount, will be taxed as ordinary income. The other part of the gain will be taxed as long term capital gain. How do I show this split in the ATX program? Do I show the LT cap gain portion on Sch D and input the ordinary income portion somewhere else? Thanks for your help.

Client has an NOL carryover from 2006. I entered this into the NOL worksheet. However, nothing is entered anywhere on the 1040 for this amount. He elected in 2006 to forego the carryback. How do I get the NOL to take? Thanks.

I have double checked that as well. Thanks.

I keep getting an e-file error message that says the total tax on retirement distributions from form 1040 must match total tax on retirement distributions from form 5329. Both filer and spouse have one 1099-R with distributions subject to the 10% penalty. The penalty on form 1040 matches the penalty on form 5329. How come the program doesn't think it matches? Has anyone else dealt with this problem? I have had other returns with 1099-Rs and form 5329 but haven't had any problems setting them up for e-file. Thanks for your help.

I thought all capital gains, whether LT or ST, were considered principal for a complex trust. The ATX DNI schedule only excludes the LT capital gain from distributable income but it includes tha ST capital gain in distributable income. Is this a correct handling or is this an ATX program problem? Thanks.